Advertising sees a lull after IPL with no big spends likely in Nov and Dec

Properties like KBC, Indian Idol and Big Boss may not bring in the large numbers, next wave only around March-April, when the 2021 edition of IPL kicks in

Television advertising, which touched a five-year high due to the Indian Premier League (IPL), is expected to get slow in the November-December period, top media agencies and experts say.

The reason is the unique combination of festive-season advertising and IPL this year, resulting in companies spending heavily during the September-October months and first ten days of November to get maximum bang for the buck.

Now that the IPL has concluded, experts say, that there are not enough tent-pole properties to attract eyeballs. 

"Television right now has Kaun Banega Crorepati, which will conclude shortly, making way for Indian Idol. Bigg Boss will continue for some time. And on sports channels, there is the India-Australia series," says Karan Taurani, vice-president, research, Elara Capital.

"These properties may not be enough from an advertising perspective. I see the next wave in terms of advertising around March-April, when the 2021 edition of the IPL will kick in," Taurani says.

Media experts expect television advertising in terms of volumes to be down by at least 5-8 per cent in November-December, which is expected to hurt the overall advertising growth rate.

Consultancy firm KPMG said in a recent report that TV advertising would decline 9 per cent in FY21, hit by the Covid-19 pandemic and budgets that have been rationalised by advertisers. The only exception would be the IPL, which would attract advertising money, owing to its timing around the festive season, the report said.

 

Broadcaster Star-Disney is estimated to have earned advertising revenue in excess of Rs 2,500 crore from the 2020 edition of IPL, ahead of the Rs 2,100 crore earned last year from the property.

Despite title sponsor Vivo walking out of the tournament in August and logistical challenges of organising the IPL in Dubai, Star Sports remained resolute, hiking ad rates by around 25-30 per cent this year over last year to around 12-13 lakh per ten seconds, media buyers said.

The broadcaster managed to get a record 110 advertisers on board for the 2020 edition, industry sources said, locking 18 sponsors this year including five co-presenting sponsors and 13 associate sponsors.

Companies who stepped in as co-presenting sponsors included IPL title sponsor Dream 11, Phone Pe, Amazon, Vodafone Idea and Byju's. Among the associate sponsors included names such as Mondelez, ITC Foods, Polycab, Diageo, Procter & Gamble, Coca-Cola, Hero, KP Group, Facebook, Daily Hunt, Samsung, Cred and AMFI.

"Big spenders are all taking a pause after the IPL," Sajal Gupta, vice-president, media buying, digital, at Zenith, a national media agency, said. "Many are prioritising their spends for the new calendar year, where you have the IPL in the first half and the T20 World Cup in the second half," he says.

Taurani says that discounting of ad rates could increase in November-December as broadcasters will try to utilise their inventories. Some media experts say that discounting could touch 20-25 per cent for non-prime-time shows, though it could come down for prime-time shows.